Chapter 16 - Shares, Share Capital, Share Register And Debt Capital Flashcards
Which organisations have oversight of the UK financial services industry?
FCA PRA The Treasury Bank of England Financial Policy Committee
What is the name of the process through which the FCA supervises the employment of financial services professionals?
Controlled functions
What is the difference between allotted and issued share capital?
Allotted shares are those where the investor has acquired an irrevocable right to be registered as the holder of the shares. Issued shares are those entered in the register of members and for which a share certificate or CREST credit has been issued
What is a company’s equity share capital?
These are the ordinary voting share capital
Can shares be issued at a discount?
Yes up to 10%
If a call on shares is not paid what is the ultimate sanction available to the directors?
Forfeiture
If directors have full authority to issue additional shares what protection do existing members have from having their holding diluted?
Pre-emption rights on the allotment of new shares
When payable, what is the rate of stamp duty?
0.5% of the value of the consideration
What comfort does certification of a stock transfer form give to the purchaser of the shares?
Confirms that the holder does hold sufficient shares to complete the transfer and that the company, or share registrar, is holding the share certificate
How long do companies have in which to issue share certificates following a share issue or share transfer?
Two months
Must shareholder addresses be shown on share certificates?
No
Cash dividend payments must be funded from what reserve?
Distributable reserves
Scrip dividends and dividend re-investment schemes exchange the cash dividend for what?
Fully paid shares
Who are offered shares under a rights issue?
Existing members
If a member transfers their shares during the course of a takeover, what should happen to the form of acceptance issued for those shares?
It should be forwarded to the transferor or their broker
